What is a common role of Trust Companies in the mortgage market?

Trust companies play an important role in the mortgage market by providing funding sources for real estate investments. They engage in various financial activities, including managing trusts and estates, as well as offering a range of financial products. In the context of real estate investments, trust companies often pool investor funds and then lend these funds to borrowers seeking mortgages. This means that trust companies can effectively act as intermediaries, facilitating access to capital for property investors and developers.

By providing funding, they support not only individual homebuyers but also larger real estate projects, contributing to the overall health of the real estate market. Their role can be particularly beneficial in scenarios where traditional banks may be less willing to finance certain types of real estate transactions.